Logistics
Bahrain is the long-established trading hub of the Gulf, which started in 1824 with pearls, and is considered an open commercial environment for regional and international business.
Bahrain’s excellent transport infrastructure has already attracted DHL, Aramex, GAC Express and TNT, who benefit from Bahrain’s strategic location at the heart of the Gulf.
The best regional air connections in the Middle East, and the causeway linking Bahrain to Saudi Arabia, make for the most efficient access to the potential of key markets across the Middle East and beyond. Bahrain is ahead of many of its neighbors in terms of logistics, and maintains a permanent advantage due to its proximity to Saudi Arabia.
The logistics industry is growing fast in response to increasing demand from businesses, and supported by government investment in a number of large infrastructure projects.
Strategically located in the heart of the Gulf, Bahrain is the gateway to the region with easy access to the large economies of Kuwait, Saudi Arabia and Iran. Bahrain's logistics industry is set to flourish in the coming years as cargo volume in the Gulf increases. TEU traffic volume is predicted to increase from 2 million in 2007 to 5 million by 2015 (Oxford Business Group, 2008 Report).
Bahrain is investing US$2.9bn to upgrade its logistics infrastructure, including a new bridge to Qatar, an airport expansion, a state of the art logistics zone and a larger port. Bahrain has the shortest travel time between its seaport, airport and the logistics processing zone of anywhere in the Gulf enabling more efficient and faster processing of trade goods. Bahrain also offers the lowest costs and best value for money when it comes to operating costs
Bahrain International Airport
Bahrain International Airport has a well developed logistics operation - in 2007 the airport handled 380,000 tones of cargo, an increase of 6% on 2006. International cargo carrier DHL has exploited Bahrain’s strategic location since 1978 basing its Middle East hub in Manama. The Airport is DHL's regional distribution centre for Eastern Europe, the Middle East and North Africa. Bahrain’s world class airport has links to principal global finance and business centers. It is the regional hub for Lufthansa, Cathay Pacific and Air India. Gulf Air has the biggest network in Middle East connecting to over 40 destinations
Bahrain International Airport will soon be home to the Cargo Oasis, an expanded cargo handling facility that will:
- treble Bahrain’s international air cargo to a capacity of one million tones per annum, a level comparable with London's Heathrow Airport
- have capacity for 27 large cargo planes to be handled at any given time
The Mina Salman Port and the New Khalifa Bin Salman Port
Established since 1962, the Mina Salman Port has an annual volume of 2.5 million tonnes and 15 container berths - two of which are container berths.
The new Khalifa Bin Salman Port opened in April 2009. The new Port's features include:
- dredged to a depth of 15 metre - deep enough to accommodate any container ship currently in service
- capacity to handle ships travelling directly to Bahrain from Europe, Asia and North America without the need to unload or reload
- an annual capacity of 2.5 million TEUs - two thirds the handling capacity of Felixstowe
- built on a site of approx. 900,00m2 , the port has been designed to allow for future expansion
- due to its location, the new port is better placed geographically than Dubai’s Jebel Ali port to serve large and rapidly developing markets such as Iraq, Iran, Kuwait and Saudi Arabia
- will allow mother ships from Europe, Asia and America to dock directly in Bahrain without having to unload and transfer cargo at Jebel Ali to local feeder vessels
- adjacent is the Bahrain Logistics Zone and the two entities work closely together
Bahrain’s third port, Sitra, is located about five kilometres from Sitra Island and at the end of the Sitra pipeline causeway and is used mostly for industrial purposes, in particular the Bahrain Petroleum Company (BAPCO).
The Ports are operated by APM Terminals, the multinational container terminal operating company headquartered in the Netherlands. It is the world's second largest terminal operator with a global network of more than 50 terminals in 31 countries, with another 14 more in development or construction.
King Fahd Causeway
Bahrain offers the closest proximity to the key Saudi Arabian market, the largest in the GCC market.
The King Fahd Causeway was completed in 1986 and has brought huge economic benefits for both countries. The 25km causeway allows around 12m passengers a year to cross between the two countries allowing goods and cargo to transported between both countries.
Bahrain Logistics Zone
Bahrain is currently ranked second in the Middle East in the World Bank's Logistics Performance Index.
Bahrain Logistics Zone (BLZ) is the Middle East’s first multi-model logistics hub focusing on re-export and value-adding logistics activities. The BLZ is designed to be one of the region’s largest shipping and transport hubs capitalizing on the Kingdom’s proximity to Saudi Arabia. The Bahrain Logistics Zone is strategically located adjacent to the Mina Salaman and the new Khalifa Bin Salman Port, 13km from the Bahrain International Airport and only 40km from Al Khobar in Saudi Arabia, and also sports onsite customs operations
Land and warehousing is available with the Bahrain Logistics Zone - the first tenant will be CEVA logistics of the Netherlands in a purpose built 10,000 sq m warehouse. The $280m Bahrain Logistics Zone has already gained the attention of international logistics players and in 2008 signed leasing contracts with major international names in the logistics industry including Danzas and CEVA.
Plans to increase the size of the BLZ site by 150 per cent from the current 475,000 square meters of leasable land could attract up to $600m in direct investment.
Bahrain Investment Wharf
At the start of 2009, 97% of the landmark Bahrain Investment Wharf (BIW) has been sold out. The BIW project has provided a boost to Bahrain’s economic infrastructure. The remaining 3% of the BIW is earmarked for road network and accessory services.
Rail Infrastructure
Bahrain will benefit from the prospective GCC railway. The GCC 1,500km rail link is expected to receive approval in summer 2009. The railway will follow the Arabian Gulf coastline from Kuwait to Oman, via Saudi Arabia, Qatar and the UAE
Road Infrastructure
Bahrain benefits from excellent transport links throughout the region with easy access to Gulf markets, especially Saudi Arabia (King Fahd Causeway is a 30 minute 25km drive) and as of 2013, the Bahrain-Qatar Friendship Causeway will provide direct access to Qatar (30 minute drive). A transport corridor is planned to run between the Khalifa Bin Salman Port and the King Fahd Causeway, as well as increasing capacity in on the major arteries between the causeway, airport, ports and industrial zones. $694m of ongoing investment has been pledged to other major projects, such as the reconstruction of the Sitra crossing and the Sheikh Khalifa bin Salman Highway
Qatar – Bahrain Causeway
Construction for the 45km causeway between Bahrain and Qatar will begin mid-2009 - this will be the longest man made sea-bridge in the world. The four-lane highway is expected to cut the travel time by car between Qatar and Bahrain from four and half hours to around 30 minutes.
The $5.5 billion project will take four years to complete and will open in 2013 - the original design has been amended to also potentially include a high speed rail link between Manama and Doha. When completed, oil and gas related products will be able to be transported from the Bahrain Logistics Zone to the country with the world's third largest gas reserves in under an hour. The project includes freight and passenger rail lines providing a direct connection for high speed freight and passenger trains
Logistics Opportunities in Bahrain
The best regional air connections in the Middle East and the causeway linking Bahrain to Saudi Arabia make for the most efficient access to the potential of key markets across the Middle East.
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